China, has decided to invest in accelerating the speed of internet and to cut the price. Many people struggle to get access to web, the estimation is around $322 billion (2 trillion Yuan) though the statement by the China’s State Council did not reveal about the same.
Rapid moves to increase the speed of the internet in urban areas by 40% could help makers like Ericsson, Nokia, Oyj Alcatel-Lucent, as well as the domestic makers like Huawei Technologies Co Ltd [HWT.UL] and ZTE Corp.
Connectivity issues continue in rural and small town and the penetration rate last year was 47.9%, Compare it with three fourths of U.S population using internet. The main advantage added in increasing broadband services and price cut is that the wide opening Telecom markets and the increased competition in the market.
An official at China’s official State Information Centre said,”There is still not enough competition, which has led to telecom’s fees being relatively high while there is still a lot of room to improve the quality of service”.